Which of the Following Statements Is FALSE

question 57

Multiple Choice

Which of the following statements is FALSE?

• A) A call option gives the owner the right to buy the asset.
• B) A put option gives the owner the right to sell the asset.
• C) A financial options contract gives the writer the right (but not the obligation) to purchase or sell an asset at a fixed price at some future date.
• D) A stock option gives the holder the option to buy or sell a share of stock on or before a given date for a given price.

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Definitions:

Price Ranges

The spread between the lowest and highest price at which a good or service is sold in a market.

Price Elasticity

A calculation that shows the impact of price changes on the quantity of a good that is demanded.

Price Increase

A rise in the cost of goods or services, affecting the purchasing power of consumers.

Widgets

A generic term often used to refer to any hypothetical manufactured good or product.